Meet man who once studied in IIT Kanpur, raised Rs 120 crore for startup, but now struggling to pay rent due to...

Harsh Pokharna, co-founder and CEO of OKCredit, revealed that he was financially struggling in 2019, living "paycheck by paycheck," even after securing Rs 120 crore in funding for his Bengaluru-based startup. In a detailed LinkedIn post, the IIT graduate said that his experience wasn't unique. He attributed the financial strain on founders to venture capitalists. Pokharna advised founders and entrepreneurs, stating, "VCs want founders to stay poor… So if you're a founder, don't let anyone shame you into staying poor," in his post.

What exactly happened?

The entrepreneur elaborated on the situation, noting that founders, despite raising substantial funding, often face financial constraints and stress. He attributed this to venture capitalists, who, he claimed, often prefer founders to remain financially vulnerable, as it gives them more control. He said that "a founder with money becomes dangerous," adding that financial independence allows founders to "build on their own terms" and potentially disagree with investors.

“If a founder dares to ask for a little personal liquidity to clear their loans, to finally stop living on the edge they're told they might ‘lose their hunger,'” Mr Pokharna claimed. “Meanwhile, the same VCs have no problem throwing millions at serial founders who have beach houses and retirement funds,” he added.

About OkCredit

The Bengaluru based CEO launched OkCredit in 2017 with co-founders Gaurav Kunwar and Aditya Prasad. Pokharna mentioned that his startup secured Rs120 crore in funding in 2019.

Despite this funding, Pokharna faced financial hardship, lacking savings and struggling with high living costs in Bengaluru, living "paycheck to paycheck." He asserted that this experience is common among entrepreneurs who, despite raising significant funds, often find themselves in similar financial situations.

“In 2019, even after raising ₹120 crore Series A for OkCredit, I was broke. I was living paycheck to paycheck. Had no savings and was still worrying about rent in Bangalore,” Pokharna wrote on LinkedIn.

The IITian CEO claims he has observed this pattern repeatedly with various founders. He states that these founders do not personally benefit from the millions they have raised for their startups.

Social media reaction

Ever since Pokharna shared this post, it has gone viral, with several users sharing their thoughts.

Taking to the comment section, one user wrote, “The “broke but building” phase is often glorified but the struggle is real. I've seen founders do incredible things while carrying silent financial anxiety. It doesn't just wear you out, it stops your fears and make you choose and risk to win bigger!"

Another said, "The word "broke" is quite broken at this point! Really...CEOs are broke?!?!? I think all that glitters afterall is only snatched-away-gold!!! Maybe founders need negotiating skills too, who knew lolz."